,,ii #aaith ,,congress #ast ,session ,s4 #aaig ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bg1 #bjbe,mr4 ,lee introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to help individuals receiving assistance under the supplemental nutrition assistance program in obtaining self-sufficiency1 to provide information on total spending on means-tested welfare programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,snap ,reform and ,upward ,mobility ,act of #bjbe4 #b4 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title4,sec4 #b4 ,table of contents4,,title ,i--,poverty measurement improvement,sec4 #aja4 ,improving the measurement of poverty in the ,united ,states4,sec4 #ajb4 ,commission on valuation of government benefits4,sec4 #ajc4 ,,gao reports on effect of supplementary data on calculation of poverty rates and related measures4,sec4 #ajd4 ,rule of construction4,,title ,,ii--,modifications to supplemental nutrition assistance program,sec4 #bja4 ,work requirements4,sec4 #bjb4 ,employment and training program outcomes reporting4,sec4 #bjc4 ,state matching funds4,sec4 #bjd4 ,eligibility4,sec4 #bje4 ,compliance with fraud investigations4,sec4 #bjf4 ,authorized users of electronic benefit transfer cards4,sec4 #bjg4 ,reauthorization of medium- or high-risk retail food stores and wholesale food concerns4,sec4 #bjh4 ,state activity reports4,sec4 #bji4 ,disqualification by ,state agency4,sec4 #baj4 ,retention of recaptured funds by ,states4 ,i ,poverty measurement improvement #aja4 ,improving the measurement of poverty in the ,united ,states 7a7 ,definitions ,in this section3 7#a7 ,federal benefit ,the term ,federal benefit means a benefit1 refundable tax credit1 or other form of assistance provided under any of the following programs3 7,a7 ,earned ,income ,tax ,credit 7refundable portion74 7,b7 ,child ,tax ,credit 7refundable portion74 7,c7 ,supplemental ,security ,income4 7,d7 ,temporary ,assistance for ,needy ,families4 7,e7 ,title ,,iv-,e ,foster ,care4 7,f7 ,title ,,iv-,e ,adoption ,assistance4 7,g7 ,medicaid4 7,h7 ,,schip4 7,i7 ,indian ,health ,services4 7,j7 ,,ppaca refundable premium assistance and cost sharing tax credit4 7,k7 ,assets for ,independence program4 7,l7 ,supplemental ,nutrition ,assistance ,food ,program4 7,m7 ,school ,breakfast4 7,n7 ,school ,lunch4 7,o7 ,women1 ,infants1 and ,children 7,,wic7 ,food ,program4 7,p7 ,child and ,adult ,care ,food ,program4 7,q7 ,the ,food ,distribution ,program on ,indian ,reservations 7,,fdpir74 7,r7 ,nutrition ,program for the ,elderly4 7,s7 ,seniors ,farmers' ,market ,nutrition ,program4 7,t7 ,commodity ,supplemental ,food ,program4 7,u7 ,section #h ,housing4 7,v7 ,public ,housing4 7,w7 ,housing for ,persons with ,disabilities4 7,x7 ,home ,investment ,partnership ,program4 7,y7 ,rural ,housing ,service4 7,z7 ,rural ,housing ,insurance ,fund4 7,,aa7 ,low-,income ,home ,energy ,assistance ,program4 7,,bb7 ,universal ,service ,fund ,low ,income ,support ,mechanism 7subsidized phone services74 7,,cc7 ,pell ,grants4 7,,dd7 ,supplemental ,educational ,opportunity ,grants4 7,,ee7 ,american ,opportunity ,tax ,credit 7refundable portion74 7,,ff7 ,healthy ,start4 7,,gg7 ,job ,corps4 7,,hh7 ,head ,start 7including ,early ,head ,start74 7,,ii7 ,weatherization ,assistance4 7,,jj7 ,chafee ,foster ,care ,independence ,program4 7,,kk7 ,child ,care ,subsidies from the ,child ,care and ,development ,fund4 7,,ll7 ,child ,care from the ,temporary ,assistance for ,needy ,families ,block ,grant4 7,,mm7 ,emergency ,assistance to ,needy ,families with ,children4 7,,nn7 ,senior ,community ,service ,employment ,program4 7,,oo7 ,migrant and ,seasonal ,farm ,workers ,training ,program4 7,,pp7 ,indian and ,native ,american ,employment and ,training ,program4 7,,qq7 ,independent ,living ,education and ,training ,vouchers4 7#b7 ,resource unit ,the term resource unit means all co-resident individuals who are related by birth1 marriage1 or adoption1 plus any co-resident unrelated children1 foster children1 and unmarried partners and their relatives4 7#c7 ,market income ,the term market income means individual income from the following3 7,a7 ,earnings4 7,b7 ,interest4 7,c7 ,dividends4 7,d7 ,rents1 royalties1 and estates and trusts4 7,e7 ,the monetary value of employer-sponsored health insurance benefits4 7,f7 ,other forms of income1 as determined by the ,director4 7#d7 ,entitlement and other income ,the term entitlement and other income means income from the following3 7,a7 ,unemployment 7insurance7 compensation4 7,b7 ,workers' compensation4 7,c7 ,social ,security4 7,d7 ,veterans' payments and benefits4 7,e7 ,survivor benefits4 7,f7 ,disability benefits 7not including benefits under the ,supplemental ,security ,income program74 7,g7 ,pension or retirement income4 7,h7 ,alimony4 7,i7 ,child support4 7,j7 ,financial assistance from outside of the household4 7,k7 ,medicare4 7#e7 ,entitlement and earned unit income ,the term entitlement and earned unit income means the sum of all market income and entitlement and other income4 7#f7 ,income tax data ,the term income tax data means return information1 as such term is defined under section #fajc7;b77#b7 of the ,internal ,revenue ,code of #aihf4 7#g7 ,administering agency ,the term administering agency means a ,state or ,federal agency responsible for administering a ,federal benefit4 7#h7 ,total resource unit income ,the term total resource unit income means1 with respect to a resource unit1 an amount equal to-- 7,a7 the sum of-- 7i7 all market income attributable to members of the unit2 7ii7 all entitlement and other income attributable to members of the unit2 and 7iii7 an amount1 or cash equivalent1 of all ,federal benefits received by members of the unit2 minus 7,b7 all ,state and ,federal income and payroll taxes attributable to members of the unit4 7#i7 ,earned resource unit income ,the term earned resource unit income means1 with respect to a resource unit1 all market income attributable to members of the unit4 7#aj7 ,personally identifiable information ,the term personally identifiable information means any information that identifies an individual or could reasonably be used to identify an individual that is-- 7,a7 collected pursuant to a survey conducted by the ,bureau of the ,census2 or 7,b7 disclosed to the ,bureau of the ,census by an administering agency for the purpose of carrying out subsection 7b74 7#aa7 ,director ,the term ,director means the ,director of the ,bureau of the ,census4 7b7 ,verification of data collected in the ,annual ,social and ,economic ,supplement to the ,current ,population ,survey 7#a7 ,in general ,beginning in fiscal year #bjbe1 in order to more accurately determine the extent of poverty in the ,united ,states and the anti-poverty effectiveness of ,federal benefit programs1 the ,director shall collect1 in addition to the data collected under the ,annual ,social and ,economic ,supplement to the ,current ,population ,survey1 data from the appropriate administering agencies related to the following3 7,a7 ,participation in any ,federal benefit program and the monetary or cash equivalent value of such benefit for an individual1 where possible1 and otherwise for resource units or households4 7,b7 ,the total amount of market income for individuals4 7,c7 ,the total amount of entitlement and other income for individuals4 7,d7 ,payment of income taxes and payroll taxes for individuals4 7,e7 ,total resource unit income4 7,f7 ,total earned resource unit income4 7,g7 ,any other information about benefits or income received by individuals that the ,director determines necessary to carry out this section and that is not included in the data relating to participation in ,federal benefit programs or market income for individuals4 7#b7 ,administering agency data ,not later than #f months after receiving a request from the ,director1 the head of each administering agency shall make available to the ,director such data 7including income tax data7 as the ,director shall require for the purpose of carrying out this subsection and for the purposes outlined in section #f of title #ac1 ,united ,states ,code4 7#c7 ,publication of data 7,a7 ,rates and other data 7i7 ,report ,the ,director shall submit to ,congress1 not later than ,january #a1 #bjbf1 a report detailing the implementation of this section1 including-- 7,i7 the availability of related data2 7,,ii7 the quality of the data2 and 7,,iii7 the methodology proposed for assigning dollar values to the receipt of noncash ,federal benefits4 7ii7 ,tables and graphs ,the ,director shall produce tables and graphs showing for each year the poverty rates and related data calculated using data collected under paragraph 7#a71 including-- 7,i7 the total resource unit income for survey respondents2 7,,ii7 the total earned resource unit income for survey respondents2 7,,iii7 the total of all amounts described in subparagraphs 7,a7 through 7,g7 of paragraph 7#a7 that are received by survey respondents2 7,,iv7 a breakdown of the amount of income taxes and payroll taxes attributable to survey respondents2 and 7,v7 for #bjbg and subsequent years1 poverty rates calculated using updated poverty thresholds as described in clause 7iii74 7iii7 ,updated poverty thresholds ,for #bjbg and subsequent years1 the ,director shall1 in addition to the official poverty line 7as defined by the ,office of ,management and ,budget7 and the supplemental poverty measure1 provide an alternative poverty measure that uses the personal consumption expenditure price index 7as published by the ,bureau of ,economic ,analysis7 and accounts for the data collected under paragraph 7#a74 ,the ,director shall provide a comparison of the official poverty line 7as defined by the ,office of ,management and ,budget71 the supplemental poverty measure rate as defined by the ,bureau of the ,census1 and the alternative poverty rate created using the alternative poverty measure under this section4 7iv7 ,rule of construction ,the ,office of ,management and ,budget shall not use the additional data collected by the ,director pursuant to paragraph 7#a7 for purposes of defining the official poverty line4 7,b7 ,confidentiality ,consistent with the provisions of sections #h1 #i1 and #bc7;c7 of title #ac1 ,united ,states ,code1 the ,director shall ensure the confidentiality of information furnished to the ,director under this subsection4 7c7 ,protection and disclosure of personally identifiable information 7#a7 ,in general ,the security1 disclosure1 and confidentiality provisions set forth in sections #i and #bc of title #ac1 ,united ,states ,code1 shall apply to personally identifiable information obtained by the ,bureau of the ,census pursuant to this section4 7#b7 ,restricted access to personally identifiable information ,access to personally identifiable information collected to supplement the restricted-use ,current ,population ,survey ,annual ,social and ,economic ,supplements in accordance with subsection 7b77#a7 shall be available only to those who have access to the ,current ,population ,survey data with the permission of the ,bureau of the ,census and in accordance with any other applicable provision of law4 7#c7 ,penalties ,any individual who knowingly accesses or discloses personally identifiable information in violation of this section shall be guilty of a felony and upon conviction thereof shall be fined in an amount of not more than #cjj1jjj under title #ah1 ,united ,states ,code1 or imprisoned for not more than five years1 or both4 7d7 ,state reporting of ,federal data ,beginning with the first full calendar year that begins after the date of enactment of this ,act1 with respect to any ,federal benefit that is administered at the ,state level by a ,state administering agency1 such ,state administering agency shall submit each year to the ,federal administering agency responsible for administering the benefit at the ,federal level a report that identifies each resource unit that received such benefits during such year by the personally identifiable information of the head of the resource unit and the amount1 or cash equivalent1 of such benefit received by such resource unit4 #ajb4 ,commission on valuation of government benefits 7a7 ,establishment ,there is established within the ,united ,states ,census ,bureau a commission1 to be known as the ,commission on ,valuation of ,federal ,benefits 7referred to in this section as the ,commission74 7b7 ,composition 7#a7 ,in general ,the ,commission shall be composed of #h members1 of whom-- 7,a7 #b members shall be appointed by the majority leader of the ,senate2 7,b7 #b members shall be appointed by the minority leader of the ,senate2 7,c7 #b members shall be appointed by the ,speaker of the ,house of ,representatives2 and 7,d7 #b members shall be appointed by the minority leader of the ,house of ,representatives4 7#b7 ,co-chairs ,of the members of the ,commission-- 7,a7 #a co-chair shall be designated by the majority leader of the ,senate2 and 7,b7 #a co-chair shall be designated by the ,speaker of the ,house of ,representatives4 7#c7 ,qualifications ,each member appointed to the ,commission shall have experience in-- 7,a7 quantitative policy research2 and 7,b7 welfare or poverty studies4 7c7 ,initial meeting ,not later than #fj days after the date on which the last member is appointed under subsection 7b71 the ,commission shall hold an initial meeting4 7d7 ,quorum ,six members of the ,commission shall constitute a quorum4 7e7 ,no proxy voting ,proxy voting by members of the ,commission shall be prohibited4 7f7 ,staff ,the ,director of the ,census ,bureau shall appoint an executive director of the ,commission4 7g7 ,travel expenses ,members of the ,commission shall serve without pay1 but shall receive travel expenses in accordance with sections #egjb and #egjc of title #e1 ,united ,states ,code4 7h7 ,duties of commission 7#a7 ,recommendations 7,a7 ,in general ,the ,commission shall produce recommendations for the valuation of ,federal benefits listed under section #aja7;a77#a7 for the purpose of ,united ,states ,census ,bureau estimates of the ,federal ,poverty ,level1 including non-cash benefits4 7#b7 ,report 7,a7 ,in general ,not later than #bgj days after the date of enactment of this ,act1 the ,commission shall submit to ,congress a report of the recommendations required under paragraph 7#a71 including a detailed statement of methodology and reasoning behind recommendations4 7,b7 ,public availability ,the report required by subparagraph 7,a7 shall be made available on an internet website of the ,united ,states ,government that is available to the public4 7i7 ,powers of commission ,on request by the executive director of the ,commission1 the head of a ,federal agency shall furnish information to the ,commission4 7j7 ,termination of commission ,the ,commission shall terminate #ij days after the date on which the ,commission submits the report under subsection 7h77#b74 7k7 ,authorization of appropriations ,there is authorized to be appropriated #a1jjj1jjj to carry out this section4 #ajc4 ,,gao reports on effect of supplementary data on calculation of poverty rates and related measures ,not later than ,january #a1 #bjbh1 and every #b years thereafter1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report that compares the poverty rates and related measures calculated under the ,annual ,social and ,economic ,supplement to the ,current ,population ,survey with the poverty rates and related measures calculated using the data collected under section #aja7;b77#a74 #ajd4 ,rule of construction ,nothing in this title shall be construed to affect the eligibility of an individual or household for a ,federal benefit4 ,,ii ,modifications to supplemental nutrition assistance program #bja4 ,work requirements 7a7 ,declaration of policy ,section #b of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa7 is amended by adding at the end the following3 ,congress further finds that it should also be the purpose of the supplemental nutrition assistance program to increase employment1 to encourage healthy marriage1 and to promote prosperous self-sufficiency1 which means the ability of households to maintain an income above the poverty level without services and benefits from the ,federal ,government44 7b7 ,definition of food ,section #c7k7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjab7k77 is amended by striking means 7#a7 and inserting means the following foods1 food products1 meals1 and other items1 only if the food1 food product1 meal1 or other item is essential1 as determined by the ,secretary3 7#a74 7c7 ,general work requirements ,section #f7;d77#a77;,a7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjae7;d77#a77;,a77 is amended1 in the matter preceding clause 7i71 by striking #fj and inserting #fe4 7d7 ,hour-,based work requirement ,section #f7o7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjae7o77 is amended-- 7#a7 in paragraph 7#a77;,c71 by striking other than a supervised job search program or job search training program and inserting including an in-person supervised job search program2 7#b7 in paragraph 7#c77;,a77ii77,,iii71 by striking #ee and inserting #fd2 7#c7 in paragraph 7#d77;,a7-- 7,a7 in the matter preceding clause 7i71 by striking area and inserting county or county equivalent 2 7,b7 in clause 7i71 by striking or and inserting and2 and 7,c7 by striking clause 7ii7 and inserting the following3 7ii7 is not located within a labor market area1 as determined by data published by the ,bureau of ,labor ,statistics1 that has an unemployment rate of over #aj percent4 2 7#d7 in paragraph 7#f77;,d71 by striking #ae percent and inserting #e percent2 7#e7 by redesignating paragraph 7#g7 as paragraph 7#h72 7#f7 by inserting after paragraph 7#f7 the following3 7#g7 ,work or work preparation hours requirement for married couples with children ,the total combined number of hours of work or work preparation activities under subparagraphs 7,a71 7,b71 and 7,c7 of paragraph 7#b7 for both spouses in a married couple household with #a or more children over the age of #f shall not be greater than the total number of hours required under those subparagraphs for a single head of household4 2 and 7#g7 by inserting after paragraph 7#h7 7as so redesignated7 the following3 7#i7 ,minimum wage rule ,the limitation under subsection 7d77#d77;,f77i7 shall not apply to any work requirement1 program1 or activity required under this subsection4 4 #bjb4 ,employment and training program outcomes reporting ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,agriculture shall submit to ,congress a report1 using data from the most recent #e fiscal years available1 detailing the outcomes of beneficiaries of the supplemental nutrition assistance program established under the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa et seq47 7referred to in this section as ,,snap7 who participate in employment and training programs 7as defined in section #f7;d77#d77;,b7 of that ,act 7#g ,u4,s4,c4 #bjae7;d77#d77;,b777 for each of those #e years that includes the following information3 7#a7 ,the number and percentage of ,,snap beneficiaries in each ,state who participated in an employment and training program compared to the number and percentage of ,,snap beneficiaries in each ,state who did not participate in an employment and training program4 7#b7 ,the number and percentage of ,,snap beneficiaries in each ,state who obtained a job while participating in an employment and training program compared to the number and percentage of ,,snap beneficiaries in each ,state who obtained a job but did not participate in an employment and training program4 7#c7 ,the number and percentage of ,,snap beneficiaries in each ,state who retained a job for #f months1 #a year1 and #e years after completing an employment and training program and obtaining a job compared to the number and percentage of ,,snap beneficiaries in each ,state who retained a job for #f months1 #a year1 and #e years but did not complete an employment and training program prior to obtaining that job4 7#d7 ,the increase or decrease in wages1 if applicable1 for ,,snap beneficiaries in each ,state who retained a job for #f months1 #a year1 and #e years after completing an employment and training program and obtaining a job compared to the increase or decrease in wages1 if applicable1 for ,,snap beneficiaries in each ,state who retained a job for #f months1 #a year1 and #e years but did not complete an employment and training program prior to obtaining that job4 7#e7 ,the number and percentage of ,,snap beneficiaries who-- 7,a7 previously participated in an employment and training program2 7,b7 after that participation1 obtained a job or stopped receiving ,,snap benefits2 and 7,c7 after regaining eligibility for ,,snap benefits1 reentered an employment or training program4 7#f7 ,the average duration that ,,snap beneficiaries in each ,state participated in an employment and training program4 7#g7 ,a breakdown of-- 7,a7 the types of employment and training activities offered by the employment and training program of each ,state2 and 7,b7 the types of jobs that ,states are preparing employment and training program participants to obtain4 #bjc4 ,state matching funds ,section #d of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjac7 is amended by adding at the end the following3 7d7 ,state matching funds 7#a7 ,in general ,each ,state that participates in the supplemental nutrition assistance program shall1 as a condition of participation1 be required to contribute matching funds in an amount equal to1 of the funds received from the ,secretary by the ,state for program administration-- 7,a7 for fiscal year #bjbe1 #aj percent2 7,b7 for fiscal year #bjbf1 #ae percent2 7,c7 for fiscal year #bjbg1 #bj percent2 7,d7 for fiscal year #bjbh1 #be percent2 7,e7 for fiscal year #bjbi1 #cj percent2 7,f7 for fiscal year #bjcj1 #ce percent2 7,g7 for fiscal year #bjca1 #dj percent2 7,h7 for fiscal year #bjcb1 #de percent2 and 7,i7 for fiscal year #bjcc and each fiscal year thereafter1 #ej percent4 7#b7 ,additional contributions permitted ,nothing in this subsection prevents a ,state from contributing matching funds in an amount greater than the amount required under paragraph 7#a7 for the applicable fiscal year4 4 #bjd4 ,eligibility ,section #e7;a7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjad7;a77 is amended-- 7#a7 in the second sentence1 by inserting that are limited to families whose income and resources satisfy financial need criteria established in accordance with subsections 7c7 and 7g7 by the ,state for receipt of the benefits after 7#db ,u4,s4,c4 #fja et seq472 and 7#b7 by inserting after the second sentence the following3 ,to be deemed eligible for participation in the supplemental nutrition assistance program under this subsection1 a household shall receive a cash or noncash means-tested public benefit for at least #f consecutive months valued at not less than #ej44 #bje4 ,compliance with fraud investigations ,section #f7;d7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjae7;d77 is amended by adding at the end the following3 7#e7 ,compliance with fraud investigations ,to be eligible to participate in the supplemental nutrition assistance program1 an individual shall cooperate with any investigation into fraud under that program1 including full participation in any-- 7,a7 meeting requested by fraud investigators2 and 7,b7 administrative hearing4 4 #bjf4 ,authorized users of electronic benefit transfer cards ,section #g7;h7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaf7;h77 is amended by adding at the end the following3 7#ae7 ,authorized users 7,a7 ,in general ,a ,state agency shall register-- 7i7 at least #a member of a household issued an ,,ebt card as an authorized user of the card2 and 7ii7 an authorized representative of a household as an authorized user of the ,,ebt card issued to the household4 7,b7 ,limit ,not more than #e individuals shall be registered as authorized users1 including the authorized representative of a household1 on an ,,ebt card4 7,c7 ,unauthorized use 7i7 ,in general ,an ,,ebt card shall not be used by any individual who is not an authorized user of the ,,ebt card4 7ii7 #b unauthorized uses ,if an ,,ebt card has been used #b times by an unauthorized user of the ,,ebt card1 the head of the household to which the ,,ebt card is issued shall be required to review program rights and responsibilities with personnel of the ,state agency4 7iii7 #d unauthorized uses ,if an ,,ebt card has been used #d times by an unauthorized user of the ,,ebt card1 the ,state agency shall suspend benefits for the household to which the ,,ebt card is issued for #a month4 7iv7 #f unauthorized uses ,if an ,,ebt card has been used #f times by an unauthorized user of the ,,ebt card1 the ,state agency shall suspend benefits for the household to which the ,,ebt card is issued for #c months4 7v7 #g or more unauthorized uses ,if an ,,ebt card has been used #g or more times by an unauthorized user of the ,,ebt card1 the ,state agency shall suspend benefits for the household to which the ,,ebt card is issued for #a month per unauthorized use4 7vi7 ,administration ,any action taken under clauses 7ii7 through 7v7 shall be consistent with sections #f7;b7 and #aa7;e77#aj71 as applicable4 4 #bjg4 ,reauthorization of medium- or high-risk retail food stores and wholesale food concerns ,section #i7;a77#b77;,a7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjah7;a77#b77;,a77 is amended by striking 2 and and inserting 1 which1 in the case of a retail food store or wholesale food concern for which there is a medium risk or high risk of fraudulent transactions1 as determined by the fraud detection system of the ,food and ,nutrition ,service1 shall be annually2 and4 #bjh4 ,state activity reports ,section #aa of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjbj7 is amended by adding at the end the following3 7y7 ,state activity reports ,the ,secretary shall publish for each fiscal year a report describing the activity of each ,state in the supplemental nutrition assistance program1 which shall contain1 for the applicable fiscal year1 substantially the same information as is contained in the report published by the ,food and ,nutrition ,service entitled ,supplemental ,nutrition ,assistance ,program ,state ,activity ,report ,fiscal ,year #bjaf and published ,september #bjag4 4 #bji4 ,disqualification by ,state agency ,section #ab of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjba7 is amended by adding at the end the following3 7j7 ,disqualification by ,state agency 7#a7 ,in general ,except as provided in paragraph 7#d71 a ,state agency shall permanently disqualify from participation in the supplemental nutrition assistance program an approved retail food store or wholesale food concern convicted of-- 7,a7 trafficking in food instruments 7including any voucher1 draft1 check1 or access device 7including an electronic benefit transfer card or personal identification number7 issued in lieu of a food instrument under this ,act72 or 7,b7 selling firearms1 ammunition1 explosives1 or controlled substances 7as defined in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb77 in exchange for food instruments 7including any item described in subparagraph 7,a7 issued in lieu of a food instrument under this ,act74 7#b7 ,notice of disqualification ,the ,state agency shall-- 7,a7 provide the approved retail food store or wholesale food concern with notification of the disqualification2 and 7,b7 make the disqualification effective on the date of receipt of the notice of disqualification4 7#c7 ,prohibition of receipt of lost revenues ,a retail food store or wholesale food concern shall not be entitled to receive any compensation for revenues lost as a result of disqualification under this subsection4 7#d7 ,exceptions in lieu of disqualification 7,a7 ,in general ,a ,state agency may permit a retail food store or wholesale food concern that1 but for this paragraph1 would be disqualified under paragraph 7#a71 to continue to participate in the supplemental nutrition assistance program if the ,state agency determines1 in its sole discretion1 that-- 7i7 disqualification of the retail food store or wholesale food concern1 as applicable1 would cause hardship to participants in the supplemental nutrition assistance program2 or 7ii7 7,i7 the retail food store or wholesale food concern had1 at the time of the violation under paragraph 7#a71 an effective policy and program in effect to prevent violations described in paragraph 7#a72 and 7,,ii7 the ownership of the retail food store or wholesale food concern was not aware of1 did not approve of1 and was not involved in the conduct of the violation4 7,b7 ,civil penalty ,if a ,state agency under subparagraph 7,a7 permits a retail food store or wholesale food concern to continue to participate in the supplemental nutrition assistance program in lieu of disqualification1 the ,state agency shall assess a civil penalty in an amount determined by the ,state agency1 except that-- 7i7 the amount of the civil penalty shall not exceed #aj1jjj for each violation2 and 7ii7 the amount of civil penalties imposed for violations investigated as part of a single investigation may not exceed #dj1jjj4 7,c7 ,reporting 7i7 ,to the ,secretary ,if a ,state agency under subparagraph 7,a7 permits a retail food store or wholesale food concern to continue to participate in the supplemental nutrition assistance program in lieu of disqualification1 the ,state agency shall annually submit to the ,secretary a report describing the justification of the ,state agency for that action4 7ii7 ,to ,congress ,the ,secretary shall annually submit to ,congress a report compiling the information contained in reports submitted to the ,secretary under clause 7i74 4 #baj4 ,retention of recaptured funds by ,states ,section #af7;a7 of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjbe7;a77 is amended-- 7#a7 in the second sentence1 by striking ,the officials and inserting the following3 7#c7 ,prohibition ,the officials 2 7#b7 in the first sentence-- 7,a7 by redesignating paragraphs 7#a7 through 7#i7 as subparagraphs 7,a7 through 7,i71 respectively2 and 7,b7 by striking section #ag7n73 ,provided1 ,that the ,secretary and inserting the following3 8section #ag7n74 7#b7 ,administration on ,indian reservations and in ,native villages 7,a7 ,in general ,the ,secretary 2 7#c7 in paragraph 7#b7 7as so designated7-- 7,a7 in subparagraph 7,a71 by striking #ce percent and inserting #ej percent2 and 7,b7 by adding at the end the following3 7,b7 ,use of retained amounts for fraud investigations ,the value of funds or allotments recovered or collected pursuant to sections #f7;b7 and #ac7;c7 that are retained by a ,state under subparagraph 7,a7 in excess of #ce percent shall be used by the ,state for investigations of fraud in the supplemental nutrition assistance program4 2 and 7#d7 by striking the subsection designation and all that follows through ,subject to in the matter preceding paragraph 7#b7 7as so designated7 and inserting the following3 7a7 ,administrative cost-,sharing 7#a7 ,in general ,subject to 4